IOG Concludes Thames Pipeline Acquisition
Independent Oil and Gas (IOG) has completed the acquisition of the Thames pipeline in the Southern North Sea from Perenco UK, Tullow Oil and Centrica (now Spirit Energy).
IOG is now the approved operator of the Thames pipeline which it owns 100%.
The pipeline will provide the proposed export route for IOG’s Southern North Sea assets.
In addition to the offshore survey along the Thames pipeline and survey of all proposed platform locations and intra field connecting pipeline that is nearing completion, the company has started the Intelligent Pigging Programme (IPP) with onshore mechanical preparation work at Bacton.
The intention of the IPP is to confirm the feasibility of safe reuse of the pipeline, which is estimated to have initial capacity of 300 MMcfd. Initial results of the IPP are expected early May.
When it completes the survey, the company intends to export gas from IOG’s Blythe and Vulcan Satellite hubs once they are in production. These two hubs require an estimated maximum throughput of approximately 180 MMcfd.
Ahead of first gas, the company intends to acquire the onshore reception facilities at the Perenco Bacton terminal. A period of exclusivity has been agreed until the end of September 2018.
Andrew Hockey, CEO of IOG said: “This acquisition is an essential milestone towards Final Investment Decision for our gas hubs. Subject to the Intelligent Pigging Programme results this pipeline should allow for the tariff-free export of our 100% owned gas reserves that were otherwise stranded. Recommissioning of the pipeline may also facilitate the export of new resources that IOG may access and develop in future as well as other gas resources owned by third parties, who would pay a tariff. We are pleased also to be making good operational progress as we head towards Final Investment Decision and look forward to providing further regular updates.”